Rumor: Apple planning streaming service called iTunes Replay

Apple is supposedly about to launch a new service along with the software …

Apple is reportedly planning to launch a media streaming service along with iTunes 8 that would allow users to stream their purchases to anywhere they're logged in, possibly even including the iPhone and the Apple TV. The service is being referred to as "iTunes Replay" and would support both movie and TV show purchases.

News about iTunes Replay comes courtesy of AppleInsider, which does not directly cite any sources but notes that Apple is "believed" to be wrapping up the feature for inclusion with the next major software release of iTunes. The site notes that such a service could make life easier for users of the Apple TV, who would no longer have to sync purchases to the device or download them to a computer first before streaming them to the TV. The same applies to the iPhone and iPod touch, neither of which has enough storage capacity to make it possible to carry around many (rather large) video files. The storage problem would be solved by letting Apple do the storage and bandwidth work, and allowing the user to just stream content on-demand wherever they are.

If this feature is indeed in the works (and I'm inclined to lean towards the "cautiously optimistic" column), Apple may or may not charge customers for use of iTunes Replay. It would be pretty sweet if the company simply built it into the licensing of all iTunes movie and TV purchases, but it's also possible that Apple could try to package it with a MobileMe subscription or even a standalone subscription model.

As most of us are aware, iTunes Replay sounds strikingly similar to the video streaming already offered by other popular companies such as Netflix. But, as AI points out, Netflix's Watch Instantly service is (mostly) only available through the browser, and therefore restricts users who want to watch on-the-go. And the news does come just weeks after it was revealed that Apple had begun using Limelight Networks in addition to Akamai for iTunes content delivery. The help of two content delivery networks could indeed give Apple the bandwidth boost it needs to deliver video content to customers on-demand.